§ 27-64-6 - Reach of creditors and other claimants.
SECTION 27-64-6
§ 27-64-6 Reach of creditors and otherclaimants. – (a) Protected cell assets shall only be available to the creditors of theprotected cell company that are creditors in respect to that protected cell andshall be entitled, in conformity with the provisions of this chapter, to haverecourse to the protected cell assets attributable to that protected cell, andshall be absolutely protected from the creditors of the protected cell companythat are not creditors in respect of that protected cell and, who accordingly,shall not be entitled to have recourse to the protected cell assetsattributable to that protected cell. Creditors with respect to a protected cellshall not be entitled to have recourse against the protected cell assets ofother protected cells or the assets of the protected cell company's generalaccount.
(2) Protected cell assets shall only be available tocreditors of a protected cell company after all protected cell liabilities havebeen extinguished or provided for in accordance with the plan of operationrelating to that protected cell.
(b) When an obligation of a protected cell company to aperson arises from a transaction, or is imposed, in respect of a protectedcell: (1) that obligation of the protected cell company shall extend only tothe protected cell assets attributable to that protected cell, and the personshall, with respect to that obligation, be entitled to have recourse only tothe protected cell assets attributable to that protected cell, and (2) thatobligation of the company shall not extend to the protected cell assets of anyother protected cell or the assets of the protected cell company's generalaccount, and that person shall not, with respect to that obligation, beentitled to have recourse to the protected cell assets of any other protectedcell or the assets of the protected cell company's general account.
(c) When an obligation of a protected cell company relatessolely to the general account, the obligation of the protected cell companyshall extend only to, and that creditor shall, with respect to that obligation,be entitled to have recourse only to the assets of the protected cell company'sgeneral account.
(d) The activities, assets, and obligations relating to aprotected cell are not subject to the provisions of chapters 34, 34.1 and 34.3of this title and neither a protected cell nor a protected cell company shallbe assessed by or be required to contribute to any guaranty fund or guarantyassociation in this state with respect to the activities, assets or obligationsof a protected cell. Nothing in this section shall affect the activities orobligations of an insurer's general account.
(e) In no event shall the establishment of one or moreprotected cells alone constitute or be deemed to be a fraudulent conveyance, anintent by the protected cell company to defraud creditors or the carrying outof business by the protected cell company for any other fraudulent purpose.